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Bread Financial (formerly Alliance Data) is best known for its credit cards, but it has a lot more to offer. Its savings account and CDs have rates that put it among the best banks on our radar, but it lacks checking accounts so you can't withdraw cash directly from the bank. Read our full Bread Financial review to learn about everything it has to offer.
Bread Financial is worth checking out if you want a high rate of interest on your extra cash. Its high APYs on savings accounts and CDs as well as reasonable deposit requirements make the bank appealing to those with all balances. But you will need a checking account elsewhere to get cash when you need it.
Bread Financial offers a single type of savings account -- Bread Savings, (formerly Comenity Direct).
Bread Savings has a reasonable opening deposit requirement of just $100. In addition, its 5.15% APY is comparable to that of some top online banks we've reviewed. It has no monthly maintenance fee (as long as you're comfortable receiving eStatements). You can also make unlimited ACH transfers and mobile check deposits.
There's no way to get cash directly out of the account, but this is typical of most online savings accounts. However, because Bread Financial doesn't offer a checking account, you should be prepared to transfer funds to another bank first when you need cash.
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Bread Savings
Bread Financial is worth checking out if you want a high interest rate on your savings. Its high APYs on savings accounts and CDs as well as reasonable deposit requirements make the bank appealing to those with high or low balances. But you will need a checking account elsewhere to get cash when you need it.
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
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Bread Financial offers traditional certificates of deposit (CDs) with attractive rates. Let's take a closer look at what Bread Savings CDs have to offer.
Bread Savings CDs have competitive APYs and terms from one to five years, but the bank doesn't offer shorter terms than 12 months. If you're interested in short-term CDs, you'll need to look at Bread's competitors.
The minimum deposit requirement is not unreasonable ($1,500). Nevertheless, it's a little higher than what you might find at other banks. You'll need a substantial sum to start with if you plan to build a CD ladder. Additionally, there are early withdrawal penalties and your CD auto-renews at maturity unless you tell the bank you'd like to cash out.
APY = Annual Percentage Yield
Comenity Direct CDs (the bank behind Bread Savings) are available in many of the most popular terms, making it a flexible high-yield CD to consider for differing needs. There's also no monthly maintenance fee. But its $1,500 minimum deposit is a little steeper than what some of its competitors charge.
1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|
5.25% | 4.65% | 4.25% | 4.15% | 4.15% |
If Bread Savings CDs don't appeal to you, check out our list of the best CD rates to find some alternatives. Here are a couple select picks for comparison.
Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
---|---|---|---|---|
Member FDIC.
| APY: 5.10% | Term: 10 Months | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.70% | Term: 1 Year | Min. Deposit: $2,500 | |
APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | ||
APY: 5.15% | Term: 9 Months | Min. Deposit: $1 | ||
Member FDIC.
| APY: 4.75% | Term: 1 Year | Min. Deposit: $500 |
Bread Financial doesn't offer checking accounts. If you're interested in one, you must consider another bank. Start with our list of the best checking accounts.
We recommend comparing checking account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
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Bread Financial is better known for its credit cards than its banking services, so there aren't a lot of reviews of its savings accounts and CDs. The bank has a B+ rating with the Better Business Bureau which, while not as high as we'd like to see, is not low enough to raise alarm. It hasn't been featured in any large customer satisfaction surveys, either. As a result, there's no other information to compare its customer service to its competitors'.
Since its only deposit accounts are savings accounts and CDs, this lack of info might not bother you. You probably won't be moving your money in and out of these accounts often anyway.
Unlike brick-and-mortar banks, Bread Financial doesn't offer relationship benefits to customers who open multiple accounts. These can sometimes include waived maintenance fees and higher APYs on deposit accounts. Bread Financial already offers high APYs and fee-free accounts, so relationship benefits are unnecessary.
If Bread Financial doesn't appeal to you, one of these banks may suit you better.
If you're looking for one spot to get a credit card and a savings account, consider a Discover® Online Savings account. While the bank is well known for its selection of great credit cards, it also offers a consumer-friendly savings account with next to no fees and a competitive interest rate.
CIT Bank is a better choice if you want an online bank that enables you to manage your money in one place. It offers checking, savings, money market, and CD accounts, as well as home loans. Its savings rates are comparable to Bread Financial's. If you think CIT Bank might be a good fit for your lifestyle, take a look at our CIT Savings Connect review.
Bread Financial is right for you if:
Also read about: Bread Cashback™ American Express® Credit Card
Yes, Bread Financial is a legitimate financial institution. Money deposited at Bread Financial is FDIC insured up to $250,000 per depositor.
Bread Financial was formerly called Alliance Data, while Bread Savings was formerly called Comenity Direct. The name changes happened in early 2022, after the fintech company decided to unify all its market-facing brands and bring greater simplicity to its products.
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